Abengoa gets time until 28 October to restructure debt

The court of Seville has granted Abengoa S.A. an additional seven months until 28 October 2016 to strike a deal with lenders and avoid bankruptcy.

Creditors would contribute €1.8bn over the next five years in exchange for a 55% stake in the company.

Further, 70% of existing debt would be swapped for equity, giving other creditors a 35% stake in the company.

Creditors who infused €800m into the company as financial guarantees to develop projects would end up with a 5% stake in the restructured company.

Source: Reuters

 

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